The ITC

eChoupal
Initiative
Case Study
e-Choupal (7.17)
https://www.youtube.com/watch?v=-RH8Xl1C8eE
20 years of ITC e-Choupal
https://www.youtube.com/watch?v=clcrnsqu2f8&
t=36s
Purpose
The case explores three primary concepts
• The incremental approach to implementing Info systems (vs “Big bang”), and
the need for coherent principles to be applied consistently to make this
approach effective
• The use of IT in a way that provides corporate as well as social benefit
• Unique use of IT as an enabler of a new business
 Discussion Questions
1. Analyse the project from the perspective of three dimensions of
Sustainability. How does the project contribute to the UN SDGs ? How should
ITC develop this platform for the future? (All Groups)
2. What made this implementation successful? (Groups 1-2 )
3. How did the principles espoused by ITC overcome the obstacles
facing the eChoupal? (Groups 3-4)
4. How was value created in this model? Can everyone in this supply
chain “win”? (Groups 5-6 )
5. What were the old and new physical flows and information flows in
the channel? (Group 7)
 Reason
Growth (access to raw materials, sales to farmers)
Reasoning Better quality (at source, through learning; reduce
adulteration; lemons problem; reduce risk for
Profit
for the farmers, enable them to plant better seed)
Better Yields (hence lower costs)
eChoupal Social
Altruism (desire to empower farmers)
Increase Indian competiveness in global market
Initiative Benefit Avoid cheating (of farmers and ITC by middlemen)
Direct contact with suppliers (farmers) and future
Option customers (also farmers)
Value Create a platform for access to rural community
ITC’s Objectives
• Profit ITC believed
• Better quality product if worked more closely with its suppliers
• Correct the product quality at source (By providing information)
• The improved yield lowered the cost for ITC
• Cheating at the Mandis
• Social benefit
• Growth of International Business
• Do something good for India
• Empower the farmers through information
• Potential for Future
• Platform for rural community
• The Suppliers (farmers) could also be the customers
What made the Implementation Successful ?
ITC established a set of principles
• Trust
• Sanchalak as ambassidors, Transparency thru website,
• Clear Value
• Ëasy to use
• Foundation in Existing Social Structure
• Choupal – mapped directly to farmers natural daily routine
• Choice
• No obligation to sell to ITC - Farmers could still sell through the Mandis
• Incremental Roll out
• “Roll-out-fix-it, scale-up”
• Simplicity
• Very basic PC
• Best for India
• ITC wanted to increase the quality of India’s soybean crop
How did the Principles Overcome the
Obstacles ?
Barrier Principle
Entrenched practices Honour existing Trust; Build on Existing social structure
Lack of understanding by farmers Provide clear value, keep it simple
Legislation Best for India –change legislation to open markets. Ensure web site can
be seen by Govt. (APMC 1976)
Fears of middlemen Ensure profitable options for all players in the channel
Potential high cost Incremental Roll out, basic equipment
Illiteracy Honour existing trust (allow sanchalaks to disseminate knowledge to
illiterate farmers), keep it simple
Suspicion of new cheating Suspicious farmers can still sell at the Mandi
Technology Risk Keep it simple, incremental roll out
How was value created in the model ?
• Reducing uncertainty for farmers (allowing them to sow high quality
seeds)
• Providing knowledge on growing techniques
• Delivering access to rural markets (both for ITC and Samyojaks)
• Removal of inefficient physical transportation
• Creation of a fairer, more visible market
ITC’s Next Steps
• Downstream
• Replicate eChoupal model with other downstream products – coffee, wheat,
shrimp
• Incremental learning
• Upstream
• Market for upstream products required the principles of trust and
incremental learning
Old supply chain and information flow
New supply chain and information flow
 Versions 1, 2, 3, 4 of e-Choupal
Version 1.0
The Start IDEA: To give power of scale to small farmers by aggregating them as sellers (of produce) and as buyers (of farm inputs)
FARMERS' GAIN: They get bargain and choice - the two key virtues of competition
ITC'S GAIN: Access to inputs for its agri business; offer the use of network to other companies

Version 2.0 The Scale-up

REACH: By 2006, 40,000 villages covering 4 million farmers
OFFERING: Network now offered five services:
Information: weather, price, etc.
Knowledge: farming methods, soil testing, etc.
Purchase: Seed, fertiliser...to insurance
Sales: Farmers sell crops to ITC centres
Other: Cattle care, water harvesting, women employment etc

Version 3.0 The Deepening

NEW BUSINESSES: Add two new anchor businesses: 1) Rural jobs and employability and 2) Personalised agri services. Plus strengthen existing commodity
sourcing
MORE INTERACTION: Through Choupal Saagars and Haats and via mobile phones
NEW TECHNOLOGY: Use of especially enabled mobile phones, in addition to PCs, for two-way interaction with farmers; use of analytics; new partners

ITC Agri rolls out more collaborative e-Choupal 4.0

In its 20th year of launch, ITC Agri has rolled e-Choupal 4.0, a more collaborative and integrated platform that leverages new digital technologies to provide
end-to-end and personalised services to farmers on weather and markets on a real-time basis.
“The core expectation from the farmer is how weather forecast translates into an advisory that translates into farm input, which gets supported by credit and
results in more money into his hand. That’s the role the 4.0 performs in this evolution of the farmer-centric and farmer-driven innovation,”
Rapid quality testing: The new platform delivers information on crop monitoring, crop advisory and electronic marketing place for farm inputs, helps in remote
sensing for addressing crop stress and with the help of start-ups, does rapid quality testing. These features are integrated in the 4.0 version.
 SDG

SDG2:
End hunger & achieve food security ICT can help to reduce hunger and increase food security
❖ By giving farmers direct access to market information, weather forecasts, as well as
planting, harvesting and targeted irrigation advice, logistics and storage.
❖ Helping to increase yield, restore soil, reduce waste and improve both productivity and
effectiveness.